Correlation Between COPT Defense and BTB Real
Can any of the company-specific risk be diversified away by investing in both COPT Defense and BTB Real at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining COPT Defense and BTB Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COPT Defense Properties and BTB Real Estate, you can compare the effects of market volatilities on COPT Defense and BTB Real and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in COPT Defense with a short position of BTB Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of COPT Defense and BTB Real.
Diversification Opportunities for COPT Defense and BTB Real
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COPT and BTB is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding COPT Defense Properties and BTB Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTB Real Estate and COPT Defense is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on COPT Defense Properties are associated (or correlated) with BTB Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTB Real Estate has no effect on the direction of COPT Defense i.e., COPT Defense and BTB Real go up and down completely randomly.
Pair Corralation between COPT Defense and BTB Real
Considering the 90-day investment horizon COPT Defense is expected to generate 1.81 times less return on investment than BTB Real. But when comparing it to its historical volatility, COPT Defense Properties is 2.17 times less risky than BTB Real. It trades about 0.03 of its potential returns per unit of risk. BTB Real Estate is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 271.00 in BTB Real Estate on July 20, 2025 and sell it today you would earn a total of 4.00 from holding BTB Real Estate or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
COPT Defense Properties vs. BTB Real Estate
Performance |
| Timeline |
| COPT Defense Properties |
| BTB Real Estate |
COPT Defense and BTB Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COPT Defense and BTB Real
The main advantage of trading using opposite COPT Defense and BTB Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COPT Defense position performs unexpectedly, BTB Real can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BTB Real will offset losses from the drop in BTB Real's long position.| COPT Defense vs. Highwoods Properties | COPT Defense vs. Vornado Realty Trust | COPT Defense vs. Granite Real Estate | COPT Defense vs. Public Storage |
| BTB Real vs. Dream Office Real | BTB Real vs. Prosperity Real Estate | BTB Real vs. Newlake Capital Partners | BTB Real vs. Firm Capital Property |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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